Annual inflation rose to 3.7% in December

• Germany’s CPI reversed the downtrend in December.
• EUR/USD kept the trade in the mid-1.0900s in the wake of the release.

Inflation in Germany, as tracked by the Consumer Price Index (CPI), matched estimates and ticked higher to an annualized 3.7% in December, up from 3.2% in the previous month. Furthermore, the CPI halted a five-month downward trend in the last month of 2023. Additionally, the CPI rose 0.1% from a month earlier.

The broader Harmonised Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred measure of inflation, rose 3.8% over the last twelve months and 0.2% MoM.

Market reaction

The EUR/USD remained apathetic following the release and maintained the trade around 1.0950 amidst its generalized positive bias on Thursday.